The UK antitrust regulator is already targeting Google, and is now expected to investigate Amazon and its ties to AI startup Anthropic. The investigation was prompted after Amazon invested US$4 billion in the startup.
The investigation will determine whether the investment qualifies as a merger under existing rules set by the country’s Competition and Markets Authority (CMA). Investigators have 40 working days to make a decision.
Amazon had previously said the investment does not give it a majority stake in Anthropic. The company also said financial Times The investment “does not raise any competition concerns and does not meet the CMA’s own review threshold”. Anthropic also rejected the idea that the investment signified any type of merger.
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“We are an independent company,” a spokesperson said in a statement. “Amazon is not on Anthropic’s board, nor does it have any board observer rights. We intend to cooperate with the CMA and provide them with a comprehensive understanding of Amazon’s investment and our business collaboration.”
- The investigation is a small piece of a larger puzzle as UK regulators seek to curb “close mergers.”
- This happens when large companies make a major impact on a startup through strategic investments or talent acquisition.
- This would, theoretically, give the older company all the benefits of a merger, but without the regulatory scrutiny that accompanies an official takeover.
The regulatory agency is also investigating Microsoft’s close partnership with OpenAI, another billion-dollar investment that could represent a near-merger.
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